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b) Central Banks give less loans
Legal Reserve Ratio (LRR) is a certain minimum fraction of deposits which is legally compulsory for the banks to keep as cash. The two components of LRR are Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
Central Banks gives less loans when Central Bank increases LRR.
Regards
b) Central Banks give less loans
Legal Reserve Ratio (LRR) is a certain minimum fraction of deposits which is legally compulsory for the banks to keep as cash. The two components of LRR are Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
Central Banks gives less loans when Central Bank increases LRR.
Regards